The Reuters report says that commercial property sellers are
trying to keep deals flowing after Bank of England data showed
that transactions in the sector cratered by 40% in the first
quarter this year.

But the clauses create a ticking timebomb in the sector that
could go off if Britain votes to leave the European Union — known
as a Brexit — in the referendum on June 23.

Reuters said that the "clause sets a deadline after the vote when
the buyer would be permitted to terminate the contract if the
referendum results in a decision to leave."

This is a huge deal because it means that if there is a Brexit, a
large number of commercial property deals — thinks like offices
and shop space — could be cancelled, signalling a massive drop in
demand and more supply to the market. That will cause prices to
tumble.

And it isn't just a one-off. Paul Firth, head of real estate at
law firm Irwin Mitchell LLP, also told the news agency that the
group's "bigger investment deals" with values ranging from £10
million to £80 million "either included Brexit clauses, or
purchasers had sought to negotiate that they be included."

The number of deals that could fall through could be massive.
Reuters stipulated that "since commercial real estate deals are
usually confidential, it was not possible to determine precisely
how common such clauses are." However, it said that 50% of the 24
law firms, brokerages and commercial property firms it spoke to
"had used Brexit clauses, brokered a deal with such a clause or
had requests to include them in at least one deal."